If parties to a joint venture agreed on how the profits from the joint venture would be divided, but did not specify how losses would be split, how should the losses be distributed?
A joint venture, being a form of partnership, is to be governed by the laws on partnership. Under the laws on partnership, particularly Article 1797 of the Civil Code, the losses and profits shall be distributed in accordance with the partnership agreement; if only the share of each partner in the profits has been agreed upon, the share of each in the losses shall be in the same proportion. So said the Supreme Court in the consolidated cases of Marsman Drysdale Land, Inc. vs. Philippine Geoanalytics, Inc. and Gotesco Properties, Inc. (G.R. No. 183374; 29 June 2010) and Gotesco Properties, Inc. vs. Marsman Drysdale Land, Inc. and Philippine Geoanalytics, Inc. (G.R. No. 183376; 29 June 2010).
For a digest of said cases, click on Digested Cases under Tools.